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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared UPDATE 1-Obama attacks Bush policies in Bush's home state 09 Aug 2010 Ex-Senator Stevens dies in Alaska plane crash 4:32pm EDT Fed takes fresh steps to support fragile recovery 4:39pm EDT Wall St ends lower after Fed, but off session lows 4:32pm EDT Cancer cells slurp up fructose, US study finds 02 Aug 2010 S.Korea vows firm response to more North provocation 2:09am EDT Modern Etiquette: Holidaying in polite style 09 Aug 2010 Oracle's Ellison blasts HP board for Hurd's exit 3:09am EDT Obama attacks Bush policies in Bush's home state 09 Aug 2010 Pentagon to shut military command and cut jobs 3:50am EDT UPDATE 1-Obama attacks Bush policies in Bush's home state 09 Aug 2010 Cancer cells slurp up fructose, US study finds 02 Aug 2010 Russian drought fires 09 Aug 2010 Fed takes fresh steps to support fragile recovery 4:39pm EDT Ex-Senator Stevens dies in Alaska plane crash 4:32pm EDT Editor's Choice 7:25am EDT TEXT-Oracle CEO Ellison's comments on exit of HP's Hurd 09 Aug 2010 Pentagon to shut military command and cut jobs 3:50am EDT Dog chews off Michigan man's toe, saves his life 04 Aug 2010 Attractive women overlooked for certain jobs: study 09 Aug 2010 UK's Cameron pledges crackdown on welfare fraud Digg This Tweet This Share on LinkedIn Share on Facebook Factbox FACTBOX-Key political risks to watch in Britain Mon, Aug 2 2010 Related News Cameron and Zardari seek to repair UK-Pakistani ties Fri, Aug 6 2010 UK's Cameron, Zardari try to repair relations Thu, Aug 5 2010 UK watchdog says green steps help close budget gap Thu, Jul 22 2010 Cameron tells UK diplomats to put trade first Wed, Jul 21 2010 Related Topics World » By Kylie MacLellan LONDON | Tue Aug 10, 2010 2:12pm EDT LONDON (Reuters) - Prime Minister David Cameron pledged Tuesday to crack down on benefit fraud and to cut waste in the welfare system as a step toward cutting the record peacetime budget deficit. "In our benefit system there is about 1.5 billion pounds ($2.36 billion) claimed every year by people who aren't entitled to claim that money. That is fraud. That is wrong," Cameron told voters at a town hall event in Manchester, northwestern England. Cameron said his coalition government intended to make greater use of information from private-sector credit referencing agencies to help spot benefit cheats. Cracking down on fraud in the benefit system was "the least we can do as we try and get the budget deficit under control," he said. The opposition Labor Party said Cameron's deficit-cutting policies would increase the numbers of people who were unemployed and dependent on benefits -- at a cost to the taxpayer that would dwarf savings from fraud. The Conservative-Liberal Democrat coalition, which came to power in May, has said it will make cuts of at least 25 percent across most government departments as it tackles a budget deficit running at around 11 percent of national output. It sees welfare as a prime area for savings. Britain's Justice Ministry plans to cut 2 billion pounds from its 9 billion pound budget, putting up to 15,000 jobs at risk, a union said Tuesday, citing a letter from a ministry official. Overall, welfare and tax credit fraud and error costs 5.2 billion pounds a year, Cameron said in an article for the Manchester Evening News. He said this would pay for more than 200 secondary schools or 150,000 nurses. Of the 1.5 billion pounds fraudulently claimed each year, only 20 million pounds was recovered, with three quarters of the people who are caught escaping prosecution, he said. "At a time when we're having to take such difficult decisions about how to cut back without damaging the things that matter the most, we should strain every sinew to cut error, waste and fraud in our welfare system," Cameron wrote. Last month, Work and Pensions Secretary Iain Duncan Smith launched proposals to overhaul Britain's 87 billion pound welfare system, aimed at simplifying the complex web of benefits available to reduce error and inefficiencies. Cameron said the government was also looking at introducing tougher penalties for fraud, ensuring more prosecutions and making more effort to reclaim money that was paid out wrongly. The government expects to publish its strategy for tackling welfare fraud and error in the autumn, he said. (Additional reporting by Adrian Croft, Avril Ormsby; Editing by Alison Williams) World Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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